AREVA, an unparalleled experience in building nuclear reactors

AREVA, an unparalleled experience in building nuclear reactors Frank APEL Senior Vice President Sales Central Europe and Nordic Countries AREVA, International Commercial Organisation 9 th Annual European Nuclear Power Conference Budapest, June 30 th, 2014

AREVA Serving Utilities EPR Projects Status The Value of Experience

Worldwide nuclear capacity evolution scenario WNA 2013 Reference scenario 2. WEO scenarios based on gross output corrected by minus 5% to reflect net output The future of nuclear is still bright but depends on the industry s ability to ensure highest levels of safety while optimizing economic performance 3 Frank APEL: AREVA, an unparalleled experience in building nuclear reactors

Safety is the Cornerstone of AREVA Strategy Safety of our Customers Supporting utilities in demonstrating and upgrading the safety of their fleet Safety of our Operations Maintaining the highest level of safety throughout the lifecycle of our nuclear facilities Safety of our Products A wide new-generation reactor portfolio that offers the highest safety features 30+ solutions in Safety Analysis, Safety Upgrades and Safety Procedures Reduced accident frequency rate (# of accidents / million hours worked) from 6.6 in 2004 to 1.7 in 2011 4 Frank APEL: AREVA, an unparalleled experience in building nuclear reactors

AREVA never stopped designing, building and licensing Sample of our last constructions since the 80's LING-AO 2 PWR 1 000 MWe TSN 2 EPR TM 1 600 MWe TSN 1 EPR TM 1 600 MWe FA 3 EPR TM 1 600 MWe OL 3 EPR TM 1 600 MWe LING-AO 1 PWR 1 000 MWe CIVAUX 2 PWR 1 500 MWe CIVAUX 1 PWR 1 500 MWe CHOOZ B2 PWR 1 500 MWe CHOOZ B1 PWR 1 500 MWe NECKAR 2 KONVOI PWR 1 300 MWe EMSLAND KONVOI PWR 1 300 MWe ISAR 2 KONVOI PWR 1 300 MWe TRILLO 1 PWR 1 000 MWe ANGRA 2 PWR 1 270 MWe FLAMANVILLE 1 PWR 1 300 MWe CHINON B1 PWR 900 MWe 1980 1985 1990 1995 2000 2005 2010 5 Frank APEL: AREVA, an unparalleled experience in building nuclear reactors

Track Record: OEM of ~ 100 NPPs 360+ Nuclear Reactors are served by AREVA North America O&M support 122 M&FE 98 United Kingdom O&M support 1 M&FE 15 Central Europe & Nordic Countries O&M support M&FE 36 35 Russia & CIS O&M support 5 M&FE 3 South America O&M support 4 M&FE 2 Europe, Middle East & Africa O&M support 72 M&FE 75 India M&FE 7 Asia O&M support 17 M&FE 90 Reference year: 2010 325 reactors for M&FE AREVA serves 360+ reactors 257 reactors for O&M support 6 Frank APEL: AREVA, an unparalleled experience in building nuclear reactors

A wide PWR Reactor Portfolio to better serve Utilities Needs Main Technical Data Thermal power Net power Thermal efficiency Target design availability Number of loops Steam (secondary) pressure Operation cycle length Collective dose Design service life I&C 4,590 MWth 1,650 MWe 37% 92% 4 77 bar up to 24 months <0.5 mansievert/yr 60 yrs Full digital 3,150 MWth 1,150 MWe 37% 92% 3 72 bar up to 24 months <0.5 mansievert/yr 60 yrs Full digital 7 Frank APEL: AREVA, an unparalleled experience in building nuclear reactors

AREVA Serving Utilities EPR Projects Status The Value of Experience

4 EPR Reactor Units under Construction Olkiluoto 3 Taishan 1&2 Flamanville 3 The World s First Advanced Fleet to be deployed 9 Frank APEL: AREVA, an unparalleled experience in building nuclear reactors

Olkiluoto 3 EPR Projects Industrial Schemes NSSS NI BNI CW TI CI BCI CW BoP E P C I&C Leader / PM Operator AREVA Bouygues AREVA AREVA TVO Siemens Heit kamp AREVA TVO E P C I&C PM NSSS NI CI BNI BCI BoP CW Engineering and design Procurement and delivery of equipment Construction Instrumentation and Control Project Management Nuclear Steam Supply System Nuclear Island Civil Island Balance of NI Balance of CI Balance of Plant Civil Works Flamanville 3 Taishan 1&2 NSSS NI BNI CW TI CI BCI CW BoP NSSS NI BNI CW TI CI BCI CW BoP E P C AREVA EDF Bouygues Alstom EDF Bouygues EDF E P C AREVA CNPEC CNPEC Chinese CW contractor Alstom CNPEC CNPEC Chinese CW contractor CNPEC I&C AREVA I&C AREVA Leader / PM Operator EDF Leader / PM Operator CNPEC CGNPC 10 Frank APEL: AREVA, an unparalleled experience in building nuclear reactors

Olkiluoto 3 Project Progress 86% Project progress on AREVA s scope Reactor Building Containment Line -7 m to +16 m Delivery of the Reactor Pressure Vessel Lifting of the Reactor Dome All primary loop components installed Reactor Pressure Vessel introduced Fuel handling equipment installed CRDM installation Secondary hydrotest done Containment tightness test I&C tests launched at Test Bay 2007 2008 2009 2010 2011 2012 2013 2014 11 Frank APEL: AREVA, an unparalleled experience in building nuclear reactors

Olkiluoto 3 Progress update Overall Project progress: 86% NI Construction progress: 88% completed NSSS installed 95% of piping installed 80% of the complete ventilation, electrical installation and finishing works Diesel building installed at 50% I&C Launch of the I&C Test Bay in Germany Detailed I&C: Approval of the overall I&C system plan by STUK in April Commissioning 25% completed Medium voltage distribution operational on the 4 divisions Pools tested under water Fuel transfer systems tested in dry conditions Reactor containment tightness tested 12 Frank APEL: AREVA, an unparalleled experience in building nuclear reactors

Olkiluoto 3 moving towards completion: Construction completion phase June 13 Secondary Hydrotests (SHT) performed August 13 All normal & emergency medium voltage switchgears energized 13 Frank APEL: AREVA, an unparalleled experience in building nuclear reactors

Olkiluoto 3 moving towards completion: Construction completion phase October 13 Containment Heat Removal System pump drive October 13 Installation of the RPV closure head 14 Frank APEL: AREVA, an unparalleled experience in building nuclear reactors

3 major milestones reached during the first months of 2014 1. Full success of the Containment Tightness Tests on February 12, 2014 2. Validation by STUK of the overall I&C system plan (architecture) after more than 3 years in April 2014 3. Start of the I&C tests on April 1, 2014 at Test Bay in Germany at AREVA Platform as required by the Finnish Nuclear act (YVL) 15 Frank APEL: AREVA, an unparalleled experience in building nuclear reactors

Flamanville 3 Major Milestones Copyright EDF 57% Project progress on AREVA s scope Signature of the contract First concrete pouring Installation of Safeguard system piping Delivery of the first embedded tank (RPE) Installation of the pressurizer relief tank Start of Piping Erection Welding of first supports in safeguard buildings EBS pumps installed Pouring of the last containment ring Dome lifting RPV installed 2007 2008 2009 2010 2011 2012 2013 2014 16 Frank APEL: AREVA, an unparalleled experience in building nuclear reactors All rights are reserved, see liability p.16 notice.

Flamanville 3 Progress update AREVA scope Engineering: 82% of complete scope Procurement: 89% overall progress Licensing: On-going activities for the preparation of the Operating License Application file Primary equipments: Steam Generators, Pressurizer, Primary Pump Casing, Reactor Pressure Vessel delivered on site Piping: Erection ongoing since 2011 I&C: 100 th operational I&C and first TXS I&C cabinets installed on site Installation: Reactor Pressure Vessel introduced Civil works (outside AREVA scope) >95% progress of civil work Polar crane installation and dome lifting (July 2013) Inner structure completed Outer containment up to 42.00 m 17 Frank APEL: AREVA, an unparalleled experience in building nuclear reactors

Flamanville 3 Construction works entering the final phase Copyright EDF July 13 Dome Lifting October 13 Reactor Vessel delivered to Flamanville site 18 Frank APEL: AREVA, an unparalleled experience in building nuclear reactors

Flamanville 3 Primary loop components delivery and installation Copyright EDF January 14 Reactor Pressure Vessel installation in the Reactor Building March 14 Steam Generators delivered to Flamanville site 19 Frank APEL: AREVA, an unparalleled experience in building nuclear reactors

Taishan 1&2 EPR Project Major Milestones Copyright TNPJVC 89% Project progress on AREVA s scope Signature of the Contract LOI to create a JV in Nuclear Reactor Engineering First Concrete TS2 First Concrete TS1 TS1 1 st liner lifted TS2 1 st liner lifted TS1: RPV installed TS1: Dome lifted TS2: Dome lifted TS1: All heavy components installed & primary loop welded TS2: 1 st SG delivered TS1 Installation of RPV internals 2007 2008 2009 2010 2011 2012 2013 2014 20 Frank APEL: AREVA, an unparalleled experience in building nuclear reactors

Taishan 1 Taishan 2 Taishan 1 & 2 Progress update AREVA scope Procurement: 90% on extended scope including purchasing, expediting, logistics Engineering: 91% completed Main components: Unit 1: All primary heavy components installed Unit 2: Polar Crane commissioning completed Unit 2 : Heavy components manufactured and hydro-tested Unit 2 : Pressurizer delivered to Taishan Outside AREVA scope Unit 1: Emergency Diesel Generator Introduction Unit 1: Primary circuit welded Unit 1: IRWST hydro-tested Unit 1: RIS Accumulator Discharge Test Unit 1: RPV internals installed Unit 2: Reactor Building dome in place Unit 2: RPV installation preparation 21 Frank APEL: AREVA, an unparalleled experience in building nuclear reactors

Copyright TNPJVC Taishan 1 Primary loop completion Copyright TNPJVC December 12 All heavy eqp. installed & primary loop welded July 13 1 st RCP arrived on site May 14 Start of installation of the RPV internals 22 Frank APEL: AREVA, an unparalleled experience in building nuclear reactors

Taishan 2 Delivery of heavy components Copyright TNPJVC Copyright TNPJVC Copyright TNPJVC November 13 All SGs delivered on site April 14 Pressurizer delivered on site 23 Frank APEL: AREVA, an unparalleled experience in building nuclear reactors

and New Build Update Selected by AREVA Customers New Build ongoing Negotiations New Build expected Tenders 24 Frank APEL: AREVA, an unparalleled experience in building nuclear reactors

AREVA Serving Utilities EPR Projects Status The Value of Experience

The Value of Experience: LICENSING Reviewed by reference Safety Authorities The EPR reactor: Construction license granted by Finnish, French and Chinese Safety Authorities Final Design Acceptance confirmation issued by the ONR in the UK in December 2012 LICENSING The only Gen 3+ design submitted to the post Fukushima European Safety checks The EPR Reactor fully complies with WENRA objectives for New Power Reactors and is ready to comply with post Fukushima requirements This unique breadth and depth of design review strongly mitigates the licensing risk related to nuclear new build 2005 2007 2009 2012 NNSA 国 家 核 安 全 局 26 Frank APEL: AREVA, an unparalleled experience in building nuclear reactors

The Value of Experience: KNOWLEDGE MANAGEMENT A Mature Field Experience Consolidation Process A systematic process There are more than 1600 Experience feedbacks in the data base coming from current projects and our work on currently operating plants Experience Feedbacks by Discipline Construction well established in the company: In 2011 alone, around 1 Experience feedback per day has been captured 18% KNOWLEDGE MANAGEMENT 11% Procurement This unique project delivery experience has allowed AREVA to improve on all aspects of project execution Project management and organization Engineering Procurement Construction 44% Engineering 6% Others 21% Project management 27 Frank APEL: AREVA, an unparalleled experience in building nuclear reactors

The Value of Experience: GLOBAL PROJECT ORGANISATION Generic Organization Leveraging Experienced Teams Organisation Experienced Teams World PM Support Organisation For the Taishan projects Proposals Projects GLOBAL Project PROJECT 50% ORGANISATION Management Management Directors & Managers, Office Risk & COMPETENT RESOURCES Opportunity Management Contract Management Schedule Management Estimating Lessons Learned STANDARDS, METHODS, TOOLS CROSS-FERTILIZATION - 50% Engineering staff, 90% Procurement workforce, have worked on the OL3 or FA3 projects 28 Frank APEL: AREVA, an unparalleled experience in building nuclear reactors

The Value of Experience: ENGINEERING Standardisation on Early Engineering Activities System activities: Input data for other disciplines ready earlier and better defined NSSS engineering standardized and streamlined P&ID: Important input for layout in order to validate Civil Works (CW) interfaces DSE stage 2: Important input for I&C - 60% # months ENGINEERING OL3 TSN -36% -33% -70% P&ID First Issue System description Stage 2 First issue Piping isometrics Nb of revisions Number of engineering hours for NSSS completion (for Taishan: estimate) 29 Frank APEL: AREVA, an unparalleled experience in building nuclear reactors

The Value of Experience: SUPPLY CHAIN Manufacturing of Heavy Components OL3 Y1 Y2 Y3 Y4 Y5 Tube sheet & lower shell Shells subassembly Pressure boundary & lower part sub-assembly Hydraulic tests & preparation SUPPLY CHAIN # months 70 60 50 40 30 20 10 0 ~5y OL3-40% ~3y TSN Tube sheet & lower shell _ TS1 Shells subassembly Pressure boundary & lower part sub-assembly Hydraulic tests & preparation Source: AREVA, average of the four Steam Generators for each unit Apr 12 First two steam generators delivered on Taishan site 30 Frank APEL: AREVA, an unparalleled experience in building nuclear reactors

The Value of Experience: INSTALLATION Welding of Primary Loop Welding Duration Welding of the fourth Steam Generator completed 7 # months -30% Welding of the third SG completed Welding of the second SG completed INSTALLATION 5 Welding of the first SG completed OL3 TSN 1 Welding of SG1, Taishan 31 Frank APEL: AREVA, an unparalleled experience in building nuclear reactors

The Value of Experience: PROCUREMENT Illustration on the Core Catcher Delivery time core catcher protection layer 1 # months -68% Delivery time core catcher cooling structure 1 # months -50% OL3 Included >1 year discussions about docs & construction plans FA3 PROCUREMENT <9 TSN OL3 FA3 <13 TSN Ceramic elements 1- Delivery time: from contract to delivery 32 Frank APEL: AREVA, an unparalleled experience in building nuclear reactors

The Value of Experience: CONSTRUCTION First main milestones Construction duration Dome lifting # months 47 16 Slab +1,5m CONSTRUCTION Start of inner containment 10 9 24 13 Gusset pouring 12 4 6 1 st concrete 1 st OL 3 TSN 1 33 Frank APEL: AREVA, an unparalleled experience in building nuclear reactors

EPR reactor project delivery: An unique experience already leveraged Evolution between OL3 & Taishan Engineering Number of engineering hours on the NSSS scope - 60% Construction Construction duration from 1 st concrete to dome lifting - 50% Procurement Average procurement time - 65% The EPR design and project delivery have reach industrial maturity Thank You! 34 Frank APEL: AREVA, an unparalleled experience in building nuclear reactors